VANCOUVER, and THUNDER BAY, ON, Aug. 14 /CNW/ - Puget Ventures Inc.
(TSXV:PVS), ("Puget Ventures") and Benton Resources Corp. (TSXV:BTC)
("Benton") announced today that they have entered into a Letter of Intent for
Puget Ventures to acquire an option to earn an initial 50% interest and a
further 10% interest in Benton's interest in eight claims in the Werner
Lake-Rex Lake area in North Western Ontario. Benton has the right to earn a
100% interest in the eight claims from the underlying owner, subject to a 2%
NSR, 50% of which can be purchased for $1 million.
"Puget Ventures is currently working to consolidate the Werner Lake-Rex
Lake Mineral Belt (the "Belt") and with these additional claims, Puget now has
access to a significant majority of the land position in the Belt and most of
the historically recorded mineral occurrences," said Erin Airton, President of
Puget Ventures. "Puget expects to move quickly to commence exploration
operations in the Belt, especially focused on the Nickel-PGE and Copper-Cobalt
mineralized trends and showings."
"Benton is pleased that Puget Ventures has signed the Letter of Intent
regarding the Werner Lake-Rex Lake properties. We look forward to significant
work being completed on these properties of interest," said Stephen Stares,
President and CEO of Benton.
The eight claim group covers approximately 1,237 hectares at the east end
of the Werner Lake-Rex Lake Mineral Belt. Historical shallow diamond drilling
on the project completed by Eastern Mining and Smelting in 1956 intersected
23.9m (metres) grading 1.02% Cu and 15.1gpt (gram per tonne) combined precious
metal (interpreted as silver) at approximately 60m vertically below surface.
Diamond drilling completed by Falconbridge Nickel Mines Limited during
the late 1980s intersected 1.17% Cu and 9.5gpt Ag over 29.5m (at approximately
50m vertical) that included 2.04% Cu and 5.3gpt Ag over 11.95m. An undercut
drill hole intersected a metamorphosed ultramafic (peridotite) that yielded
22.8m grading 0.1% Cu and 0.31% Ni (at 140m vertical), suggesting better
potential for nickel mineralization. All intervals are core lengths and true
thicknesses are currently unknown. Surface channel sampling completed by
Atikwa Minerals Limited in 2003 returned anomalous levels of platinum and
palladium values (0.09 to 0.145gpt).
The mineralization host is described as metamorphosed intrusive
mafic-ultramafic (gabbro, pyroxenite, peridotite) units in sulphide-rich
metasediments of Archean age. Other base and precious metal occurrences are
also documented in the Ontario Geological Survey Open File Report 5975,
"Geology of nickel-copper-chromite deposits and cobalt-copper deposits at
Werner-Rex-Bug lakes, English River Subprovince, Northwestern Ontario, by
Jack R. Packer in 1998. The abstract of this report states: "The fact that
ultamafic-mafic bodies are widely scattered throughout the medasedimentary
migmatite assemblage and distributed along several regional fault systems
enhances the possibility of discovering more potentially economic
nickel-copper and cobalt sulphide deposits in the English River Subprovince."
Puget Ventures Inc. can earn a 50% interest in Benton's interest on the
eight claims in the Kenora District with expenditures totalling $1.5 million
over a four year period, expended annually as follows:
- Minimum $250,000 by end of year one;
- Minimum $350,000 by end of year two;
- Minimum $450,000 by end of year three;
- Minimum $450,000 by end of year five.
In addition to the expenditures, upon approval of the transaction by the
TSX Venture Exchange, Puget Ventures will issue to Benton common shares valued
at $50,000 at a deemed price equal to the then prevailing market price of
Puget Venture will also reimburse Benton for payment obligations of
Benton to Dave Healey in an underlying agreement regarding the claim package.
These obligations include three payments totalling $40,000 over three years
and Puget Ventures common shares equal to the market value of 30,000 Benton
shares to be issued to the underlying owner total over three years, the value
of the shares to be based on a 20 day rolling average.
The Letter of Intent also provides provision for Puget Ventures to
acquire an additional 10% of the interest in the claims by making an
additional $750,000 in expenditures within two years of earning its initial
The Letter of Intent between Puget and Benton is subject to Board
approval by both parties, a due diligence review and TSX Venture Exchange
approval prior to closing.
Clinton Barr (P.Geo.), V.P. Exploration for Benton Resources Corp. is the
qualified person responsible for this release on behalf of Benton.
The TSX Venture Exchange has in no way passed judgement upon the merits
of the proposed Transaction and has neither approved nor disapproved the
contents of this press release.
About Puget Ventures Inc.
Puget Ventures Inc. is a Toronto Venture Exchange listed mineral
exploration company currently exploring the Trout Bay base metal property in
Red Lake, Ontario. Puget Ventures is in the process of acquiring the Werner
Lake Mineral Belt properties, which includes the Werner Lake Cobalt Mine and
the Norpax Nickel Deposit.
About Benton Resources Corp.
Benton Resources Corp. (the "Company") is a mineral exploration company
listed on the TSX Venture Exchange under the symbol BTC. Benton's aggressive
and experienced management team is focused on base and precious group metal
exploration. The Company's diverse property portfolio includes Canadian
projects which are highly prospective for gold, uranium, platinum, palladium,
nickel and copper. The Company currently has approximately $19 million in
working capital and has joint ventured several of their projects to major and
Some of the statements contained herein may be forward-looking statements
which involve known and unknown risks and uncertainties. Without limitation,
statements regarding potential mineralization and resources, exploration
results, and future plans and objectives of the Company are forward-looking
statements that involve various risks. The following are important factors
that could cause the Company's actual results to differ materially from those
expressed or implied by such forward-looking statements: changes in the world
wide price of mineral commodities, general market conditions, risks inherent
in mineral exploration, risks associated with development, construction and
mining operations, the uncertainty of future profitability and the uncertainty
of access to additional capital. There can be no assurance that
forward-looking statements will prove to be accurate as actual results and
future events may differ materially from those anticipated in such statements.
The Company undertakes no obligation to update such forward-looking statements
if circumstances or management's estimates or opinions should change. The
reader is cautioned not to place undue reliance on such forward-looking
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Stephen Stares, President and CEO, Benton
Resources Corp., 611 Montreal Street, Thunder Bay, Ontario, P7E 3P2, Phone
(807) 475-7474, Fax (807) 475-7200, www.bentonresources.ca; Ms. Erin Airton,
President, Puget Ventures Inc., 2000-1066 West Hastings Street, Vancouver, BC,
V6E 3X2, Tel: (604) 808-6420, www.pugetventures.com, Email: